Video Summary: DV CEO Highlights Opportunities in Silver Yesterday, in an interview on Commodity Culture, Shawn Khunkhun, CEO of Dolly Varden Silver (Ticker: DV.v or DOLLF for US investors)., discussed the current state of the silver market and the opportunities it presents for contrarian investors. Khunkhun emphasized that low sentiment among investors has created a significant opportunity for those willing to endure market volatility and remain focused on the long-term thesis.
Overview of Silver Market
Khunkhun began by noting that while gold has reached all-time highs in multiple currencies, silver has lagged behind. Historically, silver should outperform gold, but it has not yet broken its previous highs. He highlighted the disparity between the performance of gold and silver, pointing out that silver is up about 25% this year compared to gold's 18% rise. This lag presents a potential buying opportunity for investors seeking precious metals exposure.
Retail Demand from India
Khunkhun discussed the increasing demand for silver in India, attributing it to several factors. With gold prices hitting all-time highs, many traditional gold buyers in India are turning to silver as a more affordable alternative. Additionally, the launch of a silver ETF by the Securities and Exchange Board of India in November 2021 has facilitated easier access to silver bullion for Indian consumers. He also mentioned that the import duty on gold has increased, making silver a more attractive option.
Path to $50 Silver
Addressing the potential for silver prices to reach $50, Khunkhun pointed to the persistent supply deficits and growing industrial and investment demand. He explained that while mining and recycling together produce about a billion ounces of silver annually, demand has consistently exceeded this supply, reaching up to 1.5 billion ounces in some years. He argued that with silver historically reaching $50 twice before, it is only a matter of time before it does so again, especially given the broader macroeconomic trends and industrial demand.
De-dollarization and BRICS Payment System
Khunkhun also touched on the broader economic trend of de-dollarization, particularly in the context of the BRICS nations developing an independent payment system free from political pressures. He noted that countries like China and Russia are accumulating gold and other hard assets as they move away from the US dollar, suggesting that gold could play a role in this new payment system.
The Role of Patience in Investing
Khunkhun highlighted the importance of patience for investors, particularly in an era of instant gratification driven by social media. He cited examples of legendary investors who have taken long-term positions and remained patient through market fluctuations. He advised investors to stay focused on the long-term thesis and avoid getting distracted by short-term price movements.
Dolly Varden Silver's 2024 Drill Program
Providing an update on Dolly Varden Silver, Khunkhun detailed the company's 2024 drill program. The program, which is running from May to October, aims to make new discoveries, de-risk existing resources, and expand known deposits. He emphasized the company's strong financial position, with $20 million in the bank and significant institutional support, including shareholders like Eric Sprott.
Khunkhun highlighted several promising areas within the company's projects, including the Wolf deposit and the Homestake area, which have shown high-grade silver and gold intercepts. He expressed optimism about the potential for further discoveries and resource expansion, positioning Dolly Varden as an attractive investment opportunity in the silver space.
Overall, Khunkhun reiterated the contrarian opportunity in silver, emphasizing that the current low sentiment and undervaluation present a significant buying opportunity. He encouraged investors to consider silver equities for their potential leverage and outperformance relative to silver and gold prices. With Dolly Varden Silver's strong position and ongoing exploration efforts, the company aims to capitalize on these market dynamics and deliver value to its shareholders.
Full interview here:
Posted on behalf of Dolly Varden Silver Corp.